Watch out, ExxonMobil
In the June-ended quarter, Shell, the biggest of the European integrated companies, earned $11.56 billion, only slightly less than Exxon's $11.68 billion. That, for Shell, represented a 33% year-over-year increase.
Of course, Shell isn't riding solo here. As with other Big Oil companies, including Exxon, ConocoPhillips
According to CEO Jeroen van der Veer, Shell expects to deploy $35 billion to $36 billion in capital spending this year, up materially from the previous expectation of $24 billion to $25 billion. The new range includes $5.8 billion for Duvernay Oil, which, among other locations, is active in the Montney tight sands gas play in western Canada. But Shell has found the going tough in some international venues. For instance, earlier this week it indicated that it won't be able to meet export expectations from Nigeria, following a rash of tribal violence there.
My approach to Shell -- which could be undervalued relative to the group -- will be to watch it carefully, especially because I'm intrigued by its willingness to put its money where its exploratory mouth is. But for now, I'd rather cast my cash toward the likes of U.S. independents like Chesapeake Energy
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